Arsenal's three-match winless league run ended with a home defeat to Manchester United, trimming their lead at the top of the table to four points over Manchester City and Aston Villa.
However, Arteta stressed the need to keep perspective as the club chases its first league title since the 2003-04 season.
"It's about understanding where you are," Arteta said. "When you lose a game you have a lot of feelings because this group is so competitive. They search for excellence, and when you don't reach it, you ask questions."
He added: "My role is to bring optimism and the reality of where we are. For this club, to be in this position in February is not easy to achieve."
Arsenal's confidence was boosted midweek with a 3-2 win over Kairat Almaty, while the Gunners also progressed to the Champions League round of 16 after winning all eight matches in the league phase. They remain in contention for both domestic cups as well.
Arteta confirmed defenders Jurrien Timber and William Saliba, rested due to minor issues in midweek, are fit for the Leeds clash. Teen winger Max Dowman remains the only absentee.
Leeds, beaten 5-0 at the Emirates in August, have since improved significantly, losing only once in their last 11 games across all competitions and moving six points clear of the relegation zone.
Arteta wants his players to embrace the challenge.
"We need to play with freedom and enjoyment," he said. "The journey ahead is exciting, and everyone should look forward to it with optimism."